Contraband steel threatens local industry

Large steel producers of the nation have said that smuggled steel from Afghanistan and Iran was destroying the domestic industry. In a letter written to the Federal Board of Revenue Member Customs Operations Syed Muhammad Tariq Huda, Pakistan Association of Large Steel Producers (PALSP) General Secretary Syed Wajid Bukhari stated that contraband steel was denting the earnings of local steel producers. “Persistent and organised smuggling is battering the economy of our country,” added Bukhari. He was of the view that if the problem was not addressed in a timely manner, then no amount of loans from international lenders would be able to rescue the country’s economy. He pointed out that contraband steel bars were openly sold in Wana, Mir Ali, Miran Shah, Bannu, DI Khan and Karak at prices ranging from Rs138,000 to Rs150,000 per ton. He highlighted that the international price of steel bars stood at $772 and importing them to Pakistan costed an additional $40 in freight. He added that the commodity was subject to many other duties and taxes that added up to 71% of the cost. “It is estimated that around 50,000 tons of steel has been smuggled in the last couple of months which caused a loss worth Rs4.8 billion to the national exchequer,” he said.